Trading Verticals | Long Call Verticals | 6-5-19
Hey. Everybody, it is good to be here today my name is Brent Moors and we're talking long called verticals, today, could. Be an interesting strategy particularly, given market conditions, and volatility. Maybe. You'll find it helpful, we'll talk pros and cons of long call verticals, today but, first let's. Just hit a few of our disclosures, here, so, check, out this. Options. Are not suitable, for all investors as, a special risks inherent to, options trading may expose investors, to. Potentially. Rapid and substantial, losses spreads. Straddles, and other multi leg option strategies can entail substantial. Transaction. Costs. Including. Multiple commissions which may impact any potential return. Trades. Involving minimal potential benefit can also be significantly, impacted by transaction costs, in order to demonstrate the functionality the platform we need to use actual symbols our TD Ameritrade does not make recommendations, or determine the suitability of, any security or strategy, for. Individual traders any investment, decision. You make in your self-directed, account, is, solely, your. Responsibility, past. Performance, of any security or strategy does not guarantee future results. Or. Success, please no soliciting, no photography no recording we'll be using the, paper money application, today and, so. That's just for demonstration, purposes only, there, are your option Greeks if you're going to trade options you should probably know, your option Greeks so this is what we're gonna do today, rimy thank you for joining us everyone else as. Well thank you for joining us I'm, Ian I'm substituting, for John McNichol today in case you haven't figured that out yet and. I'm. Not sure if he's back next week or not right, now he's, in France so. With. A d-day. Commemoration. But. In. Any case let's let's. Move for today we're talking about, regarding. Long. Call, verticals. Identifying. Potential. Entry. Signals, strike. Prices expiration. Dates okay. We're. Gonna talk about determining. Max, gain and max loss we're. Gonna talk and talk about return. On risk and. Positions. And. Potential. Exit criteria on, these and then we'll place a trade on one as well so as, we, get into this you know before I get too much into the. Entry. Signals. Let's just talk quickly about, what. A long call vertical is so. A, long. Call vertical in fact let me switch over to my, paper-money. Platform if. I just pull up a stock where we have Boeing here and I, want to do a call, option not, a long call vertical just, - a call option I can, go to my option chain look, on the left side of the page and. Pick. A strike price and. We'll. I'll. Click the 345, strike price in this case, and. It. Brings up this order down here that's a long call okay, so that's a long call a vertical. Is where, we're gonna say he's going the same month so, we're gonna stick with our July 19th contract. We're. Still gonna buy that long call, but. At the same time we're. Also gonna sell, a long call as well. So. Let me do that now what. You'll see as you look at the page is. This. Is a vertical spread right here let me get my little drawing. Tool out this is a vertical spread notice. I'm buying one, contract. That. Is a lower. Strike, price. Than. The one I'm selling. Now. If. I were just to buy, the. 345. Call. How. Much was that that, was about. One. Thousand. Four hundred and fifty, five dollars by, the way today I'll be talking about prices a fair amount I may, not include every, time I mention a price the. Idea. That there, are transaction. Costs, okay, keep. That in mind there are transaction, costs, and that will affect this stuff but. So. One thousand four hundred fifty five bucks. Versus. How. Much is the spread, two. Hundred sixty six bucks to. See that so that's one, the nice things, about, long. Call verticals, are there. There, are a lot less money to get into than just doing the. The. Just. A long call okay, now, a couple points one you got to buy the lower strike price if. You if you sell the lower strike price and buy the higher strike price is no. Longer a long call vertical at that point it's a short call vertical you, know that'll, be a credit, spread but, it's also a bearish trade this, is a bullish, trade okay.
This Is a bullish trade and we, need to keep, that in mind as we're looking for this so, we. Can compare this I think it's, helpful to kind of compare this to, just doing a long call alone. Of, course there's other bullish, choices, you have we, just. Buying a stock is a bullish choice on it but so there's there's pros and cons on all these things but, so, the probably, the big advantage, is, that's. A, lower. Cost up front and thus, a lower risk right, because what's my lip risk on this my, risk is my initial debit, to. 66. That's. My initial that's my risk, what. Is my. What's. My potential. Risk. If I buy the long call. 1450. Right, so, there's, one, of the game one, of the good things now. Let's. Do this what. About potential. Gains. What. About potential gains. Well. Along, call the, higher the stock goes up the, more we potentially gain, a. Vertical. Spread. This. Once this gets above the 350, level at expiration, really. We've maxed, out on our potential, gains and I'll talk in a little bit how to calculate that, potential gain but the potential, gain is, much, much more limited than if I just did the long call okay. All, right let's, go so that is what a long call vertical is remember, I'm buying the lower strike I'm selling. The, higher strike, now. As I, mentioned, it is a bullish. Strategy. It's a bullish strategy. So when are we gonna get in these well. Look. You may have your own entry signals and and when, I talk about entry signals I'm just kind of giving you some common. Entry signals it doesn't mean there's are gonna work out perfectly, for you and that there's not others that, this is a potential, bounce trade here bullish. Candle, near, support, this is one where anticipate. So, if I can get my little drawing. Tool going here notice. The key word and this one is. Anticipating. The bounce, okay anticipating. The bells in other words our stock is going along it breaks through a potential. Here's, our potential, support level right here we're. Right there we're. Not waiting for anything else we're just jumping in that's, called anticipation. Anticipating. About the good news on that one is you get an earlier. Potentially. Make, potentially. Catch. A larger, part of the upward move but. You're not really getting you. Don't know that it's gonna bounce and, and you're, not actually, waiting, to see it start to bounce so there's always that uncertainty there now, here's, the second one. Trading. The bounce as it happens, stocks. Trade above the high of the, low day, where's. Our low day well. Right, now it looks like this is the low day. Could. That change with, tomorrow's, trading, yeah, sure could I don't know you know tomorrow, could be even. Lower but. Assuming. We get a bounce. There, then. Then, we'd. Look. To get. In so. Now. Here. Was our low day, right. There here's.
Our Move. Or close above. The high the low day it can be a close if you like welcome. CW. It. Can be a close if you like or, it. Can be just, an intraday move there you do decide ahead of time on that okay that's what it says determine what time of day to, activate, the order you. May hear people talk about a cold. Cold. Just stands for close. Above the high load day notice the key word there is close well. Maybe you're not waiting till the close okay. In which, case you may not be doing a cold but you're still the, prince is the same you're just jumping in a little bit earlier, you, can, confirm the bounce stocks. Trading, or. Closing above the high the low de near the end of the day actual. Clothes so you can do either you can do either or on that you, can actually. You. Can actually. Near. The, end wait for the near the end of the day or the actual, clothes, just. Choose ahead of time what you're going to do and that's, fine so those are potential, entry signals, here, on our. On. Our side so how do we find these well, look, you can run screens, you can also just go to watchlist, you may have a bullish watchlist already, here's. Let's. Go to charts. And, what. I have here is I just have the Dow Jones Industrial, Average right here on a watch list so, I just went to public down. Okay, could you do the S&P 100 yeah, you could you do that and be 500 yeah obviously. We want stocks that are. How. Would you say it liquid, stocks, right. Oh and, just make sure the options are liquid as well since we're talking about option, strategies, here. It's more important with options, to, really get those. To. Get those liquid stocks in there because options. The, options, are gonna, be inherently less liquid, than just. They're. Just less liquidity on the options and there is the stock so. You, really need stocks. Let me get out of my little percentage scale there and we'll do this so, here we go Boeing, look. We. Have a lot of classes on technical analysis you can follow but you want to find something this bullish now, you may perceive, this to be bullish. Maybe. A little bit of a double bottom type situation, but for, the most part we've had lower lows lower highs I don't. Think most technicians, would consider Boeing bullish right now so that may not be the case the. Thing is with these. How. Bullish, you need it to be depends, on the strike prices okay. So, let's, take let's, take 3m here for a second okay, we'll. Just use this as an example, 3m. Right, now and, I, don't know where it's going to end the day. Right, now is that 163. Bucks right so right right there is where we're at right now okay, we're. Gonna buy a call, and we're gonna sell a call if we a buy a call I'm just gonna make up prices here for a second if I buy a call, right. Here and, I, sell, a call. Right. Here where. Do I want the stock to go well. I want the stock ideally, to go above the 170. Level in. That case you want it to go above the upper strike so. What. If instead I. Buy. A call, down. At the. 155. Level. Right down here, and we, sell a call at the.
160. Level look, we're already in, a position where if the stock just goes sideways we're, in good shape on, that, do. You see that so we don't even need it to really be bullish neutrals, fine in that case but, there's a concert, down so you may go well why, don't I just always do them this way and. The. Answer is. The. Answer is. Theirs, it, affects, the price of it in this case the debit, is gonna be a lot more. Than. What. The credit is in this case so so your, risk to reward ratio. Isn't. As good if you, do this now it's a higher. Probability trade. In the sense that it's higher probability, it's gonna stay above our short call price but, our return. On risk is going to be less in, that case all, right so that's that's. Something. To consider as we're picking strike prices what. About what else what are we looking for both well look this one looks a little more bullish do, you remember before when we talked about close. Above the high-low day or move above the high-low day where's our low day here. Well. Our load a, look. The stock went, up down, up, down, up down. Up. Yep, here's, our low day right here. And. Right. Now, I mean it's we had a closed the day yet but. The, high of the low day was right here. And we're, well above that that's a bounce that, is a potential. That. Is a potential. Entry. There if we're gonna use those rules all. Right maybe we stick, with this one for a sec but let me actually I'm gonna come back to unitedhealth group let's just look at a couple others Apple. Oops, let me get on my drawing tools Apple. Bullish. Me we don't really have that trend going our direction so generally. The general technical analysis, approach. That maybe, maybe. We want to see a little more on that McDonald's. Oh look. McDonald's, had a nice trend the. Trends. We in it established, a lower low it's, gone up one two three four five six, days, in a row that's maybe a little bit concerning, at this point particularly, cuz we may have some resistance, right. Up there alright and you can go on down the list and what we'd be looking for our bullish. Symbols. Here okay look travelers, nice. Trend, on travelers, maybe extended.
A Little bit much now, expecting. The bounce but, this could be one on a watch list let's, go back to. Where. Do we send UnitedHealth okay all. Right so. Here's UnitedHealth we're. Looking for early bus let's look at our slides for one sec here okay so, we're talked about entry signals. And. That's. Our that's our entry signal. Well. We got a pic strike, prices. Well. We just talked about strike prices to a certain extent and how the. More in the money they are, the. Worse your. Return, on risk is going to be okay, the more the higher the debits gonna be the, worse the return on risk is gonna be, very. Often. Traders. Will kind, of straddle. The stock, price. With. The. Strike prices in other words here's. The stock and, we. Do a. Strike. Here, this. Would be our, short. Strike and we. Do our long strike, here. Okay. So. We'll, just make up some numbers this the stocks at $50. Or, short. Strike is at, 52. 50. Hour long, strike is @. 4750. In this case okay so you see how I say it's straddled, with that so, that's what look traders often purchase. At the money strike price. And selling out of the money so so in this case what they're saying is. They'd. Be saying well you could purchase the, $50. Instead of the 4750 that would be at the money in this circumstance, and, selling. Out of the money that would be this one in this circumstance, yes, right. So. And, then consider, your return on risk there all. Right now, what about expirations. Look. You need to give it enough time for it to move if we're doing if we do this scenario, where we're buying the 50, and we're selling, the 50 to 50, and. The. Stocks of 50 it's, probably, not gonna go up above 50 to 50 in the day or two ma, who knows but, if we think it's likely gonna take a couple weeks you, gotta buy at least a couple weeks of time. There. Plus. Maybe a little wiggle room there, because. You know you knows you if you maybe, you may have, guessed wrong on that that, one there so you gotta give enough enough time there. All. Right. Now. Let. Me do. This. What's. Our, profit. And loss or and then we'll go back to our UNH example, after we look at this slide okay now, as I mentioned, before our. Max. Loss, is the initial debit okay, max, loss is the initial, debit. Our max. Profit. Though, and. I'll go, through a real-life, example here, in a sec is the, difference, between the, strikes -. The debit okay, so if we have a, 55. Strike. And a 50, strike, what's, the difference between the strikes it's five dollars if our initial debit, was two, dollars, what. We do is we take that five, dollar difference, subtract. To two dollars, and that, would give us three. Dollars, max, key in this case okay. Alright how what's a return on wrist then we take our max profit which in this example is, three dollars we, take our max loss which. In this case is, two, dollars and that. Works out to 50. 150%, or 1.5 okay, all.
Right What's. Our risk, remember our risk was. The two dollars in this case in this example. Risk. Per trade. 2.2. Dollar risk for, a contract, would equate, to. $200. Right because we move that decimal point over two, spots on options, if. I'm willing to risk, $500. Total on a trade how many contracts could I do well. I could do two contracts, two-and-a-half, contracts, but we can't do half contracts, so we round down to two contracts let's, look at an example here okay, that may make it make, it a little better let's go United, Health. Group our, stock. Is at 243. Let's. Go to our trade well let's do. It let's see let's go to we'll. Go to 23. Days out. Stock. Is at, 243. So. I'm gonna buy the, 242. And a half. That. Would cost me. 620. So he's under 20 bucks if I just did that I'm. Going, to sell. The. Four set they because to me the 245, where. Do I want the stock to go on this trade. Above. 245. What's. My initial debit. 128. What's. My max loss. My. Initial debit 128. What's. My max gain. Remember. It's the difference, between the strikes. Which. Is two and a half dollar difference between the strikes. -. My. Initial debit, which is 128. And. What. Is that equal that, equals. 122. I think am i doing my math right there I think 122. Okay alright. So this is. M. L max loss. This. Is. My. Max gain. My. Return. On. Risk is. 122. Divided. By 128. Should. I get out my handy-dandy, calculator on, that 122, divided, by 128, is. 95%. Okay. And now. That. This. Isn't. Good or bad, it's. Just. It's. Just. It's. Just it. Is it is what it is it's it. All, is a function, of where our stock is compared. To our strike prices, all. Right so if we if, we if the stock read. 240. Dollars. Meaning. We need a bigger move to go up, what. That means was our initial debit, would be lower. We'd. Have a better return on risk but, it'd be a lower probability so, it's like this balancing. Act okay, here. Is our our. Scale, right. On. The. One side we have. Probability. And. On, the other side we have, return. On risk okay. Probability. Return. On risk and, so, that's how that that's. How that. That. Works on that so always be careful that now we, had a question Linda, thank, you for the question Linda Linda says would, they analyze town be useful I would say it. Can be helpful for some people to help visualize the, trade I. Don't. Think it's necessary. But. You can use it to help visualize the trade let's. Take a look at it real quick let. Me just check our time we're doing pretty good on time here I think so, we're going to analyze this trade, now. Some people love, to be, able to look at it this way so. Here's. That here's this now if we just had the long call. What. Would that would it look like if, we just did. The, long call. Well. Our. Stocks, right here and. There. Was a cost, to, that trade. Which was I, don't. Know the initial, cost but, the higher it. Goes the more money you make on the long call, okay. That's. What a long call looks like but. If we're, we're, at we, actually. Lose a little bit of money and, that, initial premium sorry, that's supposed to be a straight line would. Be what, our loss is okay. So, that's what it looks like come contrast, that with. What we have here. This. Is actually that was a terrible line I drew because actually it would look like this oh it. Would be our loss our. Initial, loss would actually be greater. Okay. And it. Would go up and up and up and our potential gain is greater - right. So. That, is that's, what it just a long call would look like in this case what are we doing we're minimizing, our potential, loss but. We're also, hampering. Our potential, gain on that. And. But. What. We want to do is stock to do is we want it to go up and by. Minimizing. The loss, this. Is the most we rescue is our initial debit. All. Right what was our what was our initial possible. Cost on the. 24250, contract.
Let's. See -. Forty - fifty was five fifty, wrong looking. Wrong side was, five ninety, six. Twenty six. Twenty was it would be our initial cost if we just did a long call let's. Go to that analyze tab six, twenty it's off the charts here in fact so, really. The, graph would look very different our, loss line would be down here. At. Six hundred and twenty dollars if we, just compared, this to a long call so it'd be like here. And then. It'd be like there. And then it. Would go like that okay, so, that's what a long call would look like on this graph so we're. Significantly. Reducing. The potential max loss on this, we. Are also, significant. Oops, we're, also significantly. Reducing, them the, potential gain on that as well so yeah some people find that analyzed, to have helpful in and. Some. People not so much there, but there we go okay so, there's, our trade here now, we can go and we can verify our numbers, oh did we did we figure it out yeah. We did that we can go confirm, and send and then, when we look at our order confirmation, dialogue dog, dialog. Box we can look at our max loss and max gain which. We already saw which we already kind of did by, hand but you know sometimes you don't want to do the math or whatever you can just you, can kind of cheat and just click on that. It's. Also good to review your trades before you ever put them in there. In the first place remember. There's transaction. Costs, that you have to factor in whenever. You do it okay, there's. Transaction, cost so be careful of that and then, what we can do is we can send that trade and that, trade is now an, order. That is working. Okay. Now. When. Do we get out I, guess is the next question let's, see did we know. Yeah. When, do we get out well. Keep in mind we did a two forty to fifty forty, to 50. And. A. To. Forty five here's. Our short, contract. Here. Is our long, contract. Remember. We want the stock to go above our long contract. Right here we want it to go up, our. Thought our theory, is on this yes. That. We're up trending you know we had a low a higher, lower look hopefully, these, just keep going up and if. It does. Then. That's. Great. Once. We get up, once. We get up here, it's. It's. That's. In good shape now if it goes up here tomorrow we're, not going to be at a max gain at expiration, this, may be a max game if we're if we're at 2:46. But. Not immediately. Because there's a time component on it but. This will be a positive theta, trade, if we are above our upper strike, in. Other words time decay will help us if we're above our upper strike time. Decay will not help us, if we, are below. Our lower strike, and this. Is something you can see on. The. Analyze, tab as well let's.
Look At our price slices, here look, if the stock goes up theta. Is positive, if. The stock goes down theta, is negative and, if, the stock, holds. Neutral, in this case it's not always the case but theta, is negative. But, it's going to be small, or, option. Greeks are going to be small, if the, stock is basically. In between our strikes, that's, where we are at right now stock, is in between our strikes notice, that just, the magnitude not the size or. The, sign the magnitude, of the Delta compared to these. Deltas, it's small, what about Vega look, how small baggy as volatility, is. Compared. To the. Other if. We're, in the money or out of the money now. What. Have we seen with. Volatility. Volatility, lately, okay, what. We've seen with volatility is, we've. Volatility. Spiked up recently in the markets, okay a little many concerns, in the markets or something like that volatility, despite, has spiked up a little bit well. Baidu. And. Vega. Is, negative. On just a long call, big. Time in this. Case we've. Minimized, the, Vega here, so, in case volatility, volatility, goes down this. Could be beneficial, strategy versus, just. Doing a long, call okay. All right let's. Let's. Move on here. We. Already talked about this so I'm not going to focus on that let me do. Yeah. I think we we. Did that position, sizing you, know position, sizing starts, with you got to find out your acceptable, risk, well. Let's let's look at this this case what, was our max. Loss, on, this one I think, it was 128. Or. It, was a hundred and twenty-eight dollars was. Our max loss, per. Contract. Let's. Use their example. $1000. Acceptable. Risk maybe, they have $100,000. Portfolio and that's one percent of their portfolio. Maybe. They have a $200,000, portfolium that's a half a percent of the portfolio whatever. However you come up with that you got to start with your acceptable, risk and then. You simply, take your. Acceptable. Risk risk. $1000. In this case. Divide. That by. 128. And. What, do we come up with well, I don't know it's. About this is seven, point something maybe let's, try it a thousand, divided. By 128. Is, seven, point eight okay. Seven. Point eight how many contracts, would we do all we'd round down and do seven contracts in that case so, that's how you do position sizing on those okay. What. About when do we get out. You. Know well, look. Here's a few choices okay. One. Yes. You can let the options, go all the way to expiration. Now. Remember, you. Have a long contract and you have a short contract, here the. Short contract. Is. Susceptible. To, early. Assignment. So. Be careful on that the. One that the short, contract, that is is. If, it's in the money if you're you, may get exercised assigned. Before. Expiration. Okay. The. Long contract. You. Control when it's exercised. So. You. Know that's something just to keep in mind there. So, very often. You. Know these, are usually. Long. Unlike. Short, put. Verticals, for example, for a bullish trade. Which. Can often are, often, held till expiration, these are less likely to be held all towed all the way to expiration because that's, one of the differences one. Of the questions I get sometimes on these is should. I do a short put vertical versus a long call vertical and a lot of numbers really work out to be the same one. Advantage. If. You're going to do them where the where. It's more of a neutral strategy is. That. The short put verticals, those, contracts, will be out of the money whereas. The long call vertical, those. If things are going well they're.
Going To move in the money and it. Increases, your risk. Of assignment, on them okay so. So. Usually. Long. Vertical. Traders. Will close the position prior, to expiration, okay. All. Right now, when. Do you do well if, things are going well close, it a few days before expiration you. Know it's gonna take time to work unless. You just get a massive, move up front it's gonna take take, time to work on this, so. Three. To five days before expiration maybe or something like that. You. Could just close out that whether. It's going well or maybe it's not going so well maybe it's like going. Kind of flat maybe, you've made a little bit maybe you've lost a little bit three, to five days before expiration or maybe a little more or. Maybe. Two days maybe, seven, days I don't know but. But. That's. One way to do it well. A percentage, of Max game what was our max gain on this one our, max gain was. 122. I think on the contract we were just looking at it 122. Well, let's say we said, we're, gonna get out if we've made 80% of that. Well. That. That means, 80%. Of. 120. Point eight times. One. Point to two that, means making. Ninety, seven, ninety or, round it's 98. Cents, on, that that. Would be, 80%. Of Max. Gain now. We. Bought this. For. 122. That. Would mean we'd be selling, it for. 122. Plus the 98, which. Would be to. 220. Okay. So. Sell. For 220, doesn't mean we're making 220 because we spent 122, to get in this that, would be an 80 percent gain now, I'm using 80 percent as an example you. Can use 90. Percent you can use 70 percent but that's kind of a fairly common number, now what if things don't go so great you, know here's our trade and it's. Going up and, doing. Well you. Know hey, what's going on and then, we so, we entered that long call vertical and then all of a sudden it goes like that it, breaks the support level gives you some sort of technical exit maybe it's a a, negative. Signal on a MACD, or below a moving average or something like that you. Could use that as a potential, exit of broken support you can also consider. It as, a, max loss okay. Yeah. You, you buy but you buy it for 122, and. It's. It's, only worth. You. Know it's, only worth half that 60 cents, 61. Cents would be half that maybe, it's time to, cut. Your losses and get out that way so you can use technical, you, can use technical exits on those so, those are those. Are those okay so, here's. A few other things there. Let me just make sure I covered, what I want to cover but. Max. Gain occurs when both strikes are in the money you know other words above that upper strike. Okay. However, be aware of assignment, risks we talked about that the short option could be assigned to any time prior to expiration the, max loss is the net debit of the class that trade, or. The custard rate plus, transaction. Fees always, remember that and, transaction. Fees can significantly impact. These trades, remember, we're doing we're not just doing the loan contract, we're doing the short contract, we're, adding, in transaction.
Fees And because, we're, taking, the net the difference between the long contract, in the short contract, the. Initial, amounts. Were dealing with the potential gains and everything is, this. Is that. So, question, from alfred how would you avoid max loss well if it takes it really here's. The thing if it works starts to work against you you. Can get out that's what we were talking about in the previous slide when we were talking about, like, broken support, that. Now keep. In mind there's a time value to come two components so if it breaks support, and there's still quite a ways before. Expiration the, time value component, of the, options will probably, you, probably won't be near max loss okay, now. If it moves far, enough then, yes it will but. That. Is how you avoid max, loss when things start to turn south you. Either use a, technical. Exit, or you can use a dollar exit, like I mentioned before where, we said hey if this 120, it starts at 122, if it gets down to 61 we're, gonna get out of this thing that's, how you avoid up max loss you, take a small you have to be comfortable taking a small loss in that situation, Alfred, I hope that I hope, that answers your question okay. All. Right let's. See. We. And we place the trade fair right we place the trade so so. When we look at the trade what. Its gonna look like. Is. UNH. It's. Right here. Okay. We, have a. 28th. Of June. Long. 24250. Call and, a. 20th. Of June short. 2:45. Call this is a vertical. Spread, right here so how do we monitor it well. Remember. When. We were mining we talked about a couple things we talked about monitoring, it of just, the price you can always pull up the stock chart. Of. An, underlying stock UnitedHealth, and look. At where this stock is compared, to your strikes. Or your support level but, you can also look at the current price the current price is about 122 right here, if. This goes down. That's. Bad news on, you right this is a debit spread so that's another way you can do it is look at your peel open okay. And you, can monitor that and, over. Time we hope that would that would turn up we'll just have to wait and see on that but, that's really how you monitor, it double. Check the stock price on the chart as. To where it's doing compared to these or you could actually just look at a mark our mark is at 243. Our strikes. Or upper, strike is 245, I want. Ideally. That mark to go above, the, 245. That's. The way to do that that's the way to monitor, that's. The way to monitor, that trade but we have that trade working there for us okay. All. Right now. Let. Me. Do. This. All. Right oops that is supposed to yeah, boy so, I got to go through all my slides here I kind of messed up on that there we go what we do today well before we do what tell you what we did today let. Me tell you this I just put out a survey link for you okay if you'd give us some feedback on these classes we'd love it it's only five questions long it only takes a minute just click on that link and we'll, be good we'll, be good on that okay, now. Other. Things. This, is what we did we identify, potential entry signals. Strike prices expiration. Dates we, talked about, max. Profit max, loss calculator. RoR, determine. Potential exits, and, we, also actually placed a trade on that paper money, platform. So, for, you what's the next step for you in. That case well, next step for you is to find a bullish or at least a slightly bullish stock and paper. Trade a long called vertical on it and track it I think, that will do. Do, you do you good to do that that's the way you learn it you know you, can only learn. So much from classes, you got it and classes are good education, is good but. But. Trading it is where you really learn speaking. Of classes are good coming. Up next. Which is a four, o'clock. Four. O'clock Eastern Time about 20 minutes James. Boyd. Directional. Option strategies. Okay. So. If, you want some more options education. Cowboy. The link is bad huh. Are. You able to click on it said I don't know why that link is bad let me try this one more time. Oops. I'm. Gonna try and repost that link in there. And. Hopefully. Hopefully. We'll get that link. Going. Survey. Link is not working. Well. We're gonna try this one more time here okay. Let's. See is that the same one don't.
You Try, that one I say look like I somehow, I inadvertently got, an extra letter on that other survey, link give. That one a shot if you would everyone, so, I apologize, on that that was I'm, sure, my. Own error there. On that okay. Alright, everybody just remember options, are not suitable for all investors, that's. Better good good I'm glad to hear that and in order to demonstrate the function on a platform we need you to use actual symbols, however. TD, Ameritrade does not make recommendations, just assume the suitability of any security or strategy for individual traders in the investment decision you making yourself direct the account is solely, your, responsibility. Okay. Everybody thank you very much for joining me today I. Appreciate. Your time, John, McNichol, I. Appreciate. You for letting me sub for you hopefully you got something out of our class on long call verticals, today and. Check. Out James's, bought, your webcast at the top of the hour bye bye everybody. You.
2019-06-14 00:10
